🍽️ Toolbelts Over Textbooks?

Welcome back, Future Funder!

College or trades? It's the big question right now. Gen Z's making waves, and trade schools are suddenly so hot. This week, we're breaking down why, covering educational ROI, what’s been going on in the news, and get a glimpse of Hogwarts in the machine shop. Grab a coffee and let's dive in.

On the menu today

• Trade School Trend: Toolbelts over Textbooks? 🔧🎓

• Today’s Lesson - Educational ROI 📈

• College Costs Crunch: The Financial Tightrope ⚖️

• Everything else you need to know today 📰

• Expecto Job Offer: Harry Potter goes to trade school 🪄

FAMILY FORCAST

Gen Z's Shift to Trade Schools 🚀🔧

As tuition fees soar and AI threatens white-collar jobs, Gen Z is increasingly turning to trade schools over traditional college paths. This shift promises financial stability and job security in skilled trades.

The big takeaways:

• Rising Tuition Costs: College tuition has become prohibitively expensive, pushing many to seek alternative education paths.

• Job Security in Trades: Skilled trades offer high job security and are less susceptible to automation by AI.

• Quick Entry and Lower Costs: Trade schools provide faster entry into the workforce with significantly lower educational costs.

• High Satisfaction Rates: Many in skilled trades report high job satisfaction and optimism about income potential.

As the Class of 2024 celebrates their high school achievements, a significant shift is taking place in career choices. Traditionally, the narrative has been dominated by the importance of a college degree for a successful career. However, a recent survey reveals that Gen-Z is questioning this conventional wisdom. Many are now viewing skilled trades as a more promising path to financial stability compared to pursuing a college education.

The exorbitant cost of tuition and the diminishing return on investment have made vocational training an attractive alternative. A two-year course at a trade school can virtually guarantee employment in an industry that is understaffed and grappling with a labor shortage. In contrast, the rising costs of college education and the looming threat of AI displacing white-collar jobs are making traditional degrees less appealing.

Social media platforms like TikTok are abuzz with trade-related content, attracting millions of viewers and sparking discussions about "the toolbelt generation." This trend is not just a social media fad; it reflects a deeper appreciation for skilled trades among young adults. The practicality and autonomy associated with working in the skilled trades sector appeal to many, offering a sense of fulfillment that AI-driven desk jobs may lack.

Why it matters. As parents, we need to rethink our kids' education options. Trade schools are looking pretty good these days. Workers in skilled trades report high job satisfaction and optimism. They're earning well without massive student debt. It's a solid path to financial stability that we might be overlooking. Maybe it's time to put trades on the table when we talk about our kids' futures, if we haven’t already.

What We Can Do:

• Explore Trade Schools: Research local trade schools and vocational programs that offer training in high-demand fields. Websites like TradeSchoolFuture can provide valuable information.

• Consider Apprenticeships: Look into apprenticeship opportunities that allow students to earn while they learn. The Department of Labor's Apprenticeship Finder is a great resource.

• Estimate Earnings by Trade: Use resources to estimate expected annual earnings for various trades. Check out this guide on high-paying trade jobs for detailed salary information.

Dinner Table Discussion: If you had to pick a trade to work in today, which would it be and why? 🧠🔧

Spice it up: Let family members choose for each other first, then reveal your own picks. Consider skills, personality, and interests. (Some options to get you started: electrician, plumber, carpenter, mechanic, welder, chef, hairstylist, and many more.)

THIS WEEK’S POLL

*One-click, easy voting. Remain anonymous.

Our last poll, we asked: "How much has your home insurance premium increased in the past year?"

Here's what you all had to say:

• 0 - 5%: 22.4% of parents

• 5 - 10%: 23.2% of parents

• 10 - 20%: 29.8% of parents 🏆

• 20% or more: 23.7% of parents

While the results were spread quite even across the board, the majority of you came in 10% and above with jumps this past year in what you’re paying, with near 1/4th of you seeing over 20% jumps. WOW 😲🤯

We’ll be following up in the coming weeks with further help and tools to address this for families. Stay tuned.

BACK TO SCHOOL

Today's Lesson: ROI in Education 🎓📈

Think of education as investing in yourself - it's just another form of building your personal portfolio. You're putting in capital (time and money) now, expecting those added skills and experience to increase your earning power and payoff many times over in the long run. Just like in the stock market, some educational investments might yield quick returns, while others could be slow burners that pay dividends for decades.

ROI, or Return on Investment, in education measures whether your educational choices yield valuable results compared to their costs. For families, understanding this concept is crucial when weighing schooling options, college choices, or even extracurricular activities.

Let's break it down: When considering ROI in education, as parents we should be weighing factors like:

• Future earning potential

• Career opportunities (job placement %, demand)

• Personal growth and development

• Networking possibilities

• Long-term security & financial stability

Here's a reality check: Imagine dropping $80k on a degree that barely covers your loan payments. Yikes. Now flip that - same cost, but you're pulling in $80k annually within 2 years. Over 5 years, that's a 400% return, not counting the rest of your career. That's the difference smart ROI can make - and one that’s key for us to talk about at the dinner table with the younger ones.

Why it matters for families? Look, we're all trying to set our kids up for success without breaking the bank. Understanding ROI helps us dodge those expensive missteps and find the sweet spots. It's about making sure every dollar and hour invested in education actually pays off. Trust me, your future self (and your kids) will thank you for doing this homework now.

What We Can Do:

• Explore Career Paths: Use the Bureau of Labor Statistics' Field of Degree explorer to research various career paths, their educational requirements, and potential earnings. Discover degree options

• Research Future-Proof Degrees: Explore the most in-demand degrees for the future job market. Understanding these trends can help guide your child's educational choices. Learn more about top degrees for the future

• Explore Scholarships and Grants: Reduce the cost of education by applying for scholarships and grants. Websites like Fastweb can help you find opportunities.

The Bottom Line: ROI in education boils down to smart choices that set our kids up for success. It's not just about the money – it's about finding the sweet spot between cost, skills gained, and future opportunities. By weighing these factors, we’re paving the way for our family's financial health and our kids' dreams. Remember, the best investment is one that pays off in both dollars and satisfaction.

EDUCATION ROI - IN THE NEWS

College Costs: Gen Z's Financial Tightrope ⚖️

Gen Z’s Financial Struggles with College Costs

As fall tuition bills loom, 90% of college-bound Gen Z students report they don't have enough money to cover their college expenses this year. This alarming statistic underscores the financial challenges facing today's students and their families, making the concept of Return on Investment (ROI) in education more relevant than ever.

Rising Costs and Limited Resources

The cost of attending college has been steadily increasing, with public four-year institutions averaging $27,940 per year and private colleges reaching $57,570 annually. Despite these rising costs, many Gen Z students find themselves without sufficient funds, leading to increased reliance on student loans and financial aid. According to a Georgetown study, many elite private colleges surprisingly underperform in terms of ROI compared to public universities.

University Median ROI - 10 Years After Enrollment

_{*One-click, see result. Remain anonymous.}

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LET’S GO AROUND THE TABLE

Everything else you need to know today

• Decision Time: President Biden announces he will not seek reelection in 2024, paving the way for a new Democratic candidate in the upcoming presidential race.

• Double the Trouble: A security flaw in CrowdStrike's software led to widespread IT outages, affecting major companies globally, raising concerns about cybersecurity vulnerabilities.

• Parenting Playbook: According to research, successful adults often had parents who prioritized developing strong self-discipline and self-esteem during their childhood years.

• Breakthrough Moment: The FDA approves Eli Lilly's Alzheimer's drug donanemab, marking a significant milestone in the fight against this debilitating disease affecting millions of families.

CREATIVE FINANCE - ART EDITION

Expecto Job Offer: Harry Potter goes to trade school 🪄⚡

🧙‍♀️ Your wish is our command

Thanks for reading.

Until next time!

The Future Funders Team 🍽️

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